Correlation Between Intech Biopharm and King Yuan
Can any of the company-specific risk be diversified away by investing in both Intech Biopharm and King Yuan at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intech Biopharm and King Yuan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intech Biopharm and King Yuan Electronics, you can compare the effects of market volatilities on Intech Biopharm and King Yuan and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Intech Biopharm with a short position of King Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intech Biopharm and King Yuan.
Diversification Opportunities for Intech Biopharm and King Yuan
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intech and King is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intech Biopharm and King Yuan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Yuan Electronics and Intech Biopharm is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Intech Biopharm are associated (or correlated) with King Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Yuan Electronics has no effect on the direction of Intech Biopharm i.e., Intech Biopharm and King Yuan go up and down completely randomly.
Pair Corralation between Intech Biopharm and King Yuan
If you would invest 11,250 in King Yuan Electronics on August 29, 2024 and sell it today you would earn a total of 1,300 from holding King Yuan Electronics or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Intech Biopharm vs. King Yuan Electronics
Performance |
| Timeline |
| Intech Biopharm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| King Yuan Electronics |
Intech Biopharm and King Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intech Biopharm and King Yuan
The main advantage of trading using opposite Intech Biopharm and King Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intech Biopharm position performs unexpectedly, King Yuan can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in King Yuan will offset losses from the drop in King Yuan's long position.| Intech Biopharm vs. ALFORMER Industrial Co | Intech Biopharm vs. Yeou Yih Steel | Intech Biopharm vs. Feng Hsin Steel | Intech Biopharm vs. Iron Force Industrial |
| King Yuan vs. Powertech Technology | King Yuan vs. Novatek Microelectronics Corp | King Yuan vs. Greatek Electronics | King Yuan vs. Nanya Technology Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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